Canadians in China bring value
The world has been racing to the doorsteps of China for years in hopes of breaking down the barriers and building a profitable business in a country of almost 1.4 billion people. I should know, I lived there and developed an international retail chain for a European company.
Often the risks and barriers are more significant than the rewards. For a foreign company to enter China thinking it can win in this massive and developing consumer market is exciting and naïve. Reality hits you very quickly as you recognize what used to work at home will not work in China.
Very few businesses succeed in China. The ones that do have imported the right experienced talent into the Chinese market. They realized there is a leadership and experience gap among local executives, but the expatriate executive also had an additional mandate of building a Chinese team.
The most versatile and adaptable executives have proven to be Canadians and not just in China but around the world. Why? Our cultural upbringing, values and education make Canadians among the best candidates for international assignments. Canadian executives are savvy and don’t wear their political and activists opinions on their sleeves.
That doesn’t mean we ignore human rights issues; we overcome them by making a difference in the workplaces that we lead. In fact, in my early career I was at times involved in the development of U.S. and European colleagues who were sent to Canada to work here and learn our culture. It was believed that if you could adapt and do business in Canada, and with Canadians, you can perform well in any international assignment.
But what happens when your country is at odds with China, and it hits the major news networks? First of all, it will be a big deal in your country. Secondly, no one should dismiss Chinese nationalism. My experience shows that while the Chinese consumers love Western brands, the West substantially under- estimates their loyalty to their country. That creates problems for foreign investors.
Canada has never been in a diplomatic situation where it has been at odds with China, at least not to this level with the recent Vancouver arrest of Meng Wanzhou, a senior executive with Chinese firm Huawei Technologies, and the subsequent detention in China of two Canadian business officials. If the strain in the relationship continues, it will only be a matter of time before the Chinese media begins to discredit Canadian business enterprises.
Should that happen, the risk belongs to China. That risk will spread and alienate other foreign businesses, in addition to the desire of executives to take these assignments. After all, if Canadians with their low profile and respectful approach can be detained, then who is safe? China has a lot to consider.
Canadian expatriates recognize that the laws and politics of China are different from ours, as are its judicial rulings, and we would go out of our way to respect them and not to engage in any questionable activities. The Chinese do understand the value of this practice as they themselves reciprocate the same business etiquette in a host country.
When I lived in Shanghai leading a company and had dinner with other expatriates, someone suspicious would frequently come by and ask, “Where are you from?” Many would say “I am from Canada” and especially those who were not.
For me it was a clear recognition that as a nation and society we were an inoffensive country. That’s how much equity, trust and respect Canadians have established with the international community. I now wonder how safe expats from other countries are feeling today?
China needs expatriates, not just to develop foreign investment, but to also develop the gap in business experience. This can only come from countries like Canada; without us, business development will be difficult.
Our social and economic experiences also add to the fabric of what China is trying to develop in its own internal and external competitiveness. It can’t accomplish that without Canadians, who only see the upside of what the Chinese refer to as a win-win.